Rolls-Royce remains committed to the Chinese market despite geopolitical tensions, viewing China as a crucial ecosystem for innovation and business growth. The British industrial conglomerate has cultivated a resilient strategy in China over the past 60 years, adapting to create a balanced and globally competitive environment. Troy Wang, executive vice-president of Rolls-Royce Greater China, emphasized that China is not only a market but also an integral part of their supply chain.

With over 50 suppliers in China supporting its civil and power system businesses, Rolls-Royce sources parts for both global and local operations. Wang highlighted the increasing capability of Chinese suppliers in delivering complex, high-quality parts, reinforcing the resilience of their supply chain within the country. Rolls-Royce's presence in China, its third-largest single country market, underscores its dedication to driving growth within the region and its belief in the long-term potential of the Chinese market.

Rolls-Royce is currently developing Beijing Aero Engine Services Co Ltd (BAESL), a joint venture with Air China, into a leading digitally-enabled aero engine repair and overhaul shop. Expected to be operational by the end of this year, BAESL will serve customers in China and other markets, addressing the growing demand for jet engine after-sales services in China. Airbus forecasts that Chinese carriers will acquire 9,520 new aircraft over the next 20 years to meet the increasing demand for commercial air travel.

Rolls-Royce is collaborating with local Chinese digital firms to build BAESL's digital capabilities, with plans to incorporate artificial intelligence-enabled inspections and an internet of things-connected factory. Wang stated that the joint venture with Air China demonstrates a commitment to China and the globe, emphasizing that China's focus on innovation-driven growth makes it an essential country for Rolls-Royce, extending beyond just a market.

Rolls-Royce reported a record year in business performance last year and remains optimistic about 2025. The International Air Transport Association (IATA) reported a 2.6 percent year-on-year increase in global passenger demand in February, with traffic hitting an all-time high. IATA's Director General, Willie Walsh, noted that the number of scheduled flights is expected to continue rising in March and April.